Zambia to undergo compliance test, as FATF anti-money laundering evaluation holds in 2027

Zambia is reportedly set to undergo a Mutual Evaluation by the Financial Action Task Force (FATF) in 2027 to assess its compliance with international anti-money laundering standards.

Non-compliance with FATF requirements could significantly hinder capital inflows and limit Zambia’s access to development funds and international banking networks.

This information is detailed in the Financial Intelligence Centre (FIC) Bulletin for the first quarter of 2024. As part of its preparations, Zambia is currently conducting its second National Risk Assessment (NRA) on Money Laundering, Terrorist Financing, and Proliferation Financing (ML/TF/PF).

This assessment aimed to update the 2016 risk evaluation and aligned Zambia’s anti-money laundering and counter-terrorism financing systems with FATF standards.

“In 2027, Zambia will undergo the Mutual Evaluation (ME), a process under the FATF to determine its compliance with the FATF requirements,” the bulletin stated.

During the first quarter of 2024, the FIC also completed and launched a study on the “Availability and Access to Beneficial Ownership Information for Law Enforcement Investigations in Zambia.” The study highlighted gaps in data verification mechanisms and a lack of consistent understanding of Beneficial Ownership (BO) among stakeholders.

It recommended adopting a “whole government approach” to beneficial ownership disclosure, increasing awareness, and involving the private sector in data verification.

The government has designated the Financial Intelligence Centre to coordinate the ongoing NRA.

The Ministry of Finance and National Planning launched this process, assessing sectors such as banking, insurance, designated non-financial businesses and professions, virtual asset service providers, and capital markets.

Data collection for the NRA was expected to begin in the second quarter of 2024, with the entire process anticipated to take one year to complete.

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